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(LA Times)   Study finds airline fuel surcharges rise twice as fast as the cost of fuel, and stay up even when the cost of fuel drops   (latimes.com) divider line 29
    More: Obvious, surcharges, review site, largest airlines, airlines, airline fuel, Rick Seaney  
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1169 clicks; posted to Business » on 22 Jul 2012 at 8:14 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



29 Comments   (+0 »)
   
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2012-07-22 02:12:12 PM
So airlines are screwing travel agents as well as their customers?
Say it isn't so!
 
2012-07-22 03:51:38 PM

NotARocketScientist: So airlines are screwing travel agents as well as their customers?
Say it isn't so!


There are still travel agents?

/used to work for a travel agency years ago.
 
2012-07-22 07:12:36 PM
This is my shocked face.
 
2012-07-22 07:46:46 PM
And yet every year the airline industry group goes on about how despite making unexpectedly strong profits the year before, this year they're at risk of losing huge amounts of money...
 
2012-07-22 08:34:22 PM

SilentStrider: This is my shocked face.


STRANGE, so does the pump price. WE should get the government to look into this!!!
 
2012-07-22 08:52:52 PM
All you Keynes haters out there... You might want to revisit what he said about sticky prices....
 
2012-07-22 08:57:11 PM
Price of cattle goes down but price of steak never changes?
 
2012-07-22 08:59:49 PM

Ambivalence: There are still travel agents?


Still used extensively by businesses. At $20 a pop you pay someone to take the time to shop for airfares, hold reservations and find you the cheapest pest-free hotel among dozens near an airport you've never been to. Sure you could do the work yourself but then either A) you're not getting the best deals or B) you waste several hours not doing the work you're paid to do. My last two employers REQUIRE all employees use their travel agency for all work-related travel, for this reason.

I also used a travel agency for my honeymoon. Planning the wedding was stressful enough, and after all that planning & spending I gladly paid the agent's fee to take the hassle out of travel plans.
 
2012-07-22 10:04:51 PM
allthingsd.com
 
2012-07-22 10:20:14 PM
Regardless of what airlines call fees or surcharges or anything else, the total price of a flight will always be equal to whatever maximizes customers * price. Why is this so difficult to understand? Have you ever priced out the components of the mac that you are typing on?
 
2012-07-22 10:25:26 PM
And they still need bailouts.

History of U.S. Gov't Bailouts
 
2012-07-22 10:25:58 PM
Bhcompy said all that needs to be said.
 
2012-07-22 10:39:29 PM
I can't get behind that.
 
2012-07-22 10:53:01 PM

plcow: Regardless of what airlines call fees or surcharges or anything else, the total price of a flight will always be equal to whatever maximizes customers * price. Why is this so difficult to understand? Have you ever priced out the components of the mac that you are typing on?


There are a few reasons people don't like it. For one, airlines advertise $49 fares, then tack on all of these surcharges and make the flight just as expensive as buying it from another airline that doesn't have the surcharges. This has been fixed a bit in that the airlines have to include all charges in the fare before you click buy.

The second issue is that they don't pay the 7.5% federal tax on the surcharges and fees. That tax is what keeps the runways maintained, the air traffic controllers employed, the ILS working in a thunderstorm so the planes can find the airport, those kinds of luxuries. That $49 airfare with $351 in fees and surcharges gets 3.67 paid toward keeping the system intact rather than $30. Unbundling is just a marketing term for "tax dodge".
 
2012-07-22 10:56:13 PM

dragonchild: Ambivalence: There are still travel agents?

Still used extensively by businesses. At $20 a pop you pay someone to take the time to shop for airfares, hold reservations and find you the cheapest pest-free hotel among dozens near an airport you've never been to. Sure you could do the work yourself but then either A) you're not getting the best deals or B) you waste several hours not doing the work you're paid to do. My last two employers REQUIRE all employees use their travel agency for all work-related travel, for this reason.

I also used a travel agency for my honeymoon. Planning the wedding was stressful enough, and after all that planning & spending I gladly paid the agent's fee to take the hassle out of travel plans.


My office manager does that in between facebook status updates and misfiling documents.
 
2012-07-22 10:56:37 PM

plcow: Regardless of what airlines call fees or surcharges or anything else, the total price of a flight will always be equal to whatever maximizes customers * price. Why is this so difficult to understand? Have you ever priced out the components of the mac that you are typing on?


Have you ever bought a computer that advertized the price of the case and then went and itemized each componant price?

These charges are not optional, they should be forced to be included in the ticket price.
 
2012-07-23 12:06:39 AM
So, they can't just list real ticket prices?
 
2012-07-23 12:13:22 AM
Hey, extremely slow people, it's a free market. They charge what the market will bear. There--now go find another huge mystery to ponder.
 
2012-07-23 12:33:03 AM
Somewhat related, I've been looking for a decent domestic airline that I can stick to and build miles with and so forth instead of just picking the cheapest deal. Anybody have any suggestions?
 
2012-07-23 01:41:30 AM

DrMcNinja: Somewhat related, I've been looking for a decent domestic airline that I can stick to and build miles with and so forth instead of just picking the cheapest deal. Anybody have any suggestions?


Depends on where you are flying to and from. Since I travel mostly on the west coast, Alaska has been great for me. Not sure about the rest of the country, though.
 
2012-07-23 02:56:50 AM

DrMcNinja: Somewhat related, I've been looking for a decent domestic airline that I can stick to and build miles with and so forth instead of just picking the cheapest deal. Anybody have any suggestions?



answ-merchlogos.s3.amazonaws.com

No fees! Screw the legacy carriers.
 
2012-07-23 03:40:13 AM
Hahahhahahaahahahahaaa!

DrMcNinja said "decent domestic airline."

Hahahhahahaahahahahahahhahahaahahahahaa... funny guy.
 
2012-07-23 04:52:59 AM
Well, knock me over with a feather.
 
2012-07-23 07:07:42 AM
Because consumer protections are for pinko commie socialist bastards
 
2012-07-23 07:14:20 AM

dbirchall: Hahahhahahaahahahahaaa!

DrMcNinja said "decent domestic airline."

Hahahhahahaahahahahahahhahahaahahahahaa... funny guy.


Virgin America is pretty good. The problem is they don't fly many places yet unless you're in a major city.
 
2012-07-23 07:31:32 AM
i2.cdn.turner.com

upgrd.com
 
2012-07-23 07:57:40 AM

plcow: Regardless of what airlines call fees or surcharges or anything else, the total price of a flight will always be equal to whatever maximizes customers * price. Why is this so difficult to understand? Have you ever priced out the components of the mac that you are typing on?


if the system was rational..
You have a bit to much faith in the invisible hand...
 
2012-07-23 08:59:57 AM
Let me wipe the shocked look off my face...oh wait
 
2012-07-23 04:22:32 PM
Don't like it, don't fly.

Problem solved.
 
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